The Silicon Valley Bank (SVB) crisis shook the start-up ecosystem. However, Fintech major Razorpay had plenty of solutions for all the Indian start-ups who are worried about their money going to the bank. In a post on the social media platform Twitter, the company said: “It is crucial for start-ups affected by the SVB crisis to prepare to move funds and deal with liquidity. Over the next 48 hours, here’s how we can help.” The post went on to list some things that budding entrepreneurs can do to get out of the slump. This includes becoming “Fund Movement Ready” with a global multi-currency bank account or a GIFT City bank account, enable business continuity with working capital through a line of credit of up to $120,000, and existing corporate card users RazorpayX can get a line. up to $250,000 on their card.
Razorpay also noted that its teams work 24/7 and anyone with questions can contact them via email or call. There have been some shocking developments in recent days, after it was announced that SVB will be shut down on Friday by US regulators after they took control of SVB’s customer deposits. Despite the chaos, US regulators came to the rescue of SVB depositors. In a move expected to give start-ups huge relief, the Treasury, Federal Reserve and Federal Deposit Insurance Corporation (FDIC) announced Sunday that depositors of the troubled Silicon Valley bank will have “access to all their money” starting March 13. “No loss associated with the resolution of Silicon Valley Bank will be borne by the taxpayer,” the US bodies said in a joint statement. The statement that was issued by Janet L. Yellen (Secretary of the Treasury), Jerome H. Powell (Chairman of the Federal Reserve Board) and Martin J. Gruenberg (Chairman of the FDIC) said: “Today we are taking decisive action to protect the US economy by strengthening confidence the public in our banking system. This step will ensure that the U.S. banking system continues to fulfill its vital roles of protecting deposits and providing access to credit to households and businesses in a way that promotes strong and sustainable economic growth.” The statement also announced a similar systemic risk exception for Signature Bank, New York, which was closed on Sunday by its state charter authority.
Also Read: From Yes Bank to Silicon Valley Bank: How the RBI and the US Fed handled the fallout from the collapse of two mid-sized banks